Revenue Must Be Recognized Once the Sales or Performance Effort

question 142

True/False

Revenue must be recognized once the sales or performance effort is substantially complete, regardless of whether or not collection is reasonably assured.

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Definitions:

External Stakeholder

Individuals or entities outside of a company that have an interest or concern in the business operations, such as customers, suppliers, and the community.

Supplier

An entity that provides goods or services to another organization, typically within a supply chain or production process.

Shareholder

An individual or entity that owns shares in a corporation, making them partial owners and entitling them to dividends and certain rights regarding company governance.

Marketing Information System

A structured system of managing and analyzing marketing data that supports business decision-making related to marketing activities.